Microfinance Pulse

Vol II – June 2019

MicrofinancePulse
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MICROFINANCE PULSE REPORT

ANALYTICAL CONTACTS

MICROFINANCE PULSE REPORT

Equifax SIDBI

K.M Nanaiah Arup Kumar

Managing Director and Country Head General Manager
nanaiah.kalengada@equifax.com arupkumar@sidbi.in

Shruti Joshi Rishi Pandey

AVP - Analytics Dy. General Manager
shruti.joshi@equifax.com riship@sidbi.in

Vandana Panchal Shweta Roy Srivastava

Sr.Consultant - Analytics Manager
vandana.panchal@equifax.com shwetars@sidbi.in

Jeeban Jyoti Mohanty

Consultant
jeebanm@sidbi.in
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MICROFINANCE PULSE REPORT

Index

MICROFINANCE PULSE REPORT

Executive Summary 03

Microfinance Industry Overview 04

Disbursement Trends 07

Industry Risk Profile 11

State Wise Portfolio Outstanding and Delinquency 13

Top 30 Districts – Portfolio & Delinquency 18

Abbreviations
POS = Portfolio Outstanding

DPD = Days Past Due

ATS = Average Ticket Size

BC = Banking Correspondent

SFB = Small Finance Bank

PAR = Portfolio At Risk

PSL = Priority Sector Lending

CIC = Credit Information Company

NOF = Net Owned Funds

Glossary
Live POS/Borrowers/Active loans = 0 to 179 DPD + New Account + Current Account

ATS = Disbursed Amount/ Number of Loans

K = Thousand

1-179 = 1 to 179 DPD/ Live POS

30+ Delinquency = 30-179 DPD/ Live POS

90+ Delinquency = 90-179 DPD/ Live POS

1-29 = 1 to 29 DPD/ Live POS

30-59 = 30 to 59 DPD/ Live POS

60-89 = 60 to 89 DPD/ Live POS

90-179 = 90 to 179 DPD/ Live POS

Concentration % = Live Borrowers/ Total Population

FY indicates Financial Year from April to March, eg: FY 19 will indicate the year from April
2018 to March 2019
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Executive Summary
Microfinance Pulse primarily aims to provide insights on trends in the microfinance industry
from disbursements to delinquencies to top growing states and top loan categories. The pub-
lication gives an opportunity to look into the future prospects, apart from being a repository of
all that has taken place in the microfinance sector in the recent past. The second edition of
the Microfinance Pulse provides an overview of the microfinance industry as of March 31,
2019.

Microfinance Industry Overview: The microfinance industry has total loan portfolio of
`1,78,547 crore as on March 31, 2019 which represents a growth of 40% over March 31,
2018. NBFC-MFIs hold the largest share of portfolio in micro-credit with total loan outstand-
ing of `68,156 crore, which accounts for 38% of total industry portfolio. Banks are the second
largest provider of micro-credit, with a loan amount outstanding of `59,999 crore, which
includes both direct and indirect lending through BC partnerships, accounting for 34% of total
micro-credit universe. SFBs have a total loan amount outstanding of `29,990 crore, with total
share of 17%. NBFCs account for 10% and Not-for-Profit MFIs account for 1% of the industry
portfolio.

Disbursement Trends: During FY 2019, Loan disbursal grew by 20% in terms of volume.
Loan disbursed amount for FY 2019 is `213,074 crore, which has increased by 36% as com-
pared to FY 2018. All India ATS as of FY 2019 is `31,623, which had increased by 13% on
Y-O-Y basis. ATS of bank loans is highest at `42,086, whereas ATS of NBFC-MFIs is lowest
at `25,850. Highest number of loans in FY 2019 are disbursed in `20,000 - `30,000 ticket
size category.

Industry Risk Profile: Delinquency level witnessed improvement across all the DPD buckets.
PAR (1-29 DPD), which indicates the early delinquency rates, has reduced from 4.74% in
March 2017 to 1.40% in March 2019, indicating improved collections. The risk levels for PAR
60-89 days past due, has reduced from 2.41% in March 2017 to 0.24% in March 2019.

Geographical Concentration: Top 10 states account for 83% of the microfinance industry’s
gross loan portfolio. West Bengal and Tamil Nadu contribute 34.7% of the top 10 states.
Amongst the top states, West Bengal, Tami Nadu, Bihar and Karnataka has portfolio of more
than `15,000 crore each.

Top 30 Districts: Microfinance industry has a presence in 619 districts in India. Top 30
districts comprise 25% of portfolio outstanding whereas 213 districts contribute 80% of the
portfolio. 111 districts have portfolio outstanding of less than `10 crore.
Microfinance
Industry Overview

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MFI Industry Snapshot – as on March 31, 2019
Graph-01
Unique Customer ('000) Active Loans ('000)
11,894 14,914
25,533 39,340

780 64,103 924 86,467

Industry Industry
8,047 8,780

17,849 22,509

Portfolio (` Crore) Disbursed Amount (` Crore) - FY 2019

29,990 31,673
68,156 83,200 BANK

SFB
1,863 178,547 2,157 213,074
Industry Industry
NBFC-MFI
18,539 17,448

NBFC

59,999 78,596
Not For Profit MFI

Not for
MFI Industry Snapshot of March' 2019 Banks SFBs NBFC-MFIs NBFCs Total Industry
Profit MFIs
Unique Live Borrowers ('000) 17,849 11,894 25,533 8,047 780 64,103

Active Loans ('000) 22,509 14,914 39,340 8,780 924 86,467

Portfolio Outstanding (` crore) 59,999 29,990 68,156 18,539 1,863 178,547

Market Share in Outstanding Portfolio (in%) 34 17 38 10 1 100

Disbursed Amount (` crore) - FY 2019 78,596 31,673 83,200 17,448 2,157 213,074

Average Ticket Size (in `) FY 2019 42,086 30,780 25,850 31,722 29,656 31,623

30+ Delinquency 0.50% 1.13% 0.91% 2.73% 0.69% 1.00%

90+ Delinquency 0.22% 0.54% 0.37% 1.35% 0.26% 0.45%

Table-01

NBFC-MFIs have the highest number of unique live customers

Banks have the lowest 30+ delinquency at 0.50% across all categories of lenders

Note : In MFI segment there are 5 crore unique live borrowers. Difference in the unique number of customers is due to the customers having multiple relationships with
Institution’s like SFBs, Banks, NBFC-MFIs, NBFCs
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MFI Industry Overview
Graph-02 Industry Growth and Market Share by Lender Type
Portfolio Outstanding (in `crore)

200000 178,547
180000
160000 10%
127,223
140000
105,994
120000 10% 38%
100000 7%
78,123
80000 30% 36%
17%
Banks
60000 SFBs
26% 18%
31%
40000 NBFC-MFIs
20000 44% 35% 34% NBFCs
31%
27% Not for Profit MFIs
Mar' 16 Mar' 17 Mar' 18 Mar' 19 Total Industry

Portfolio Outstanding (in `crore)

Particulars (as on March 31st) FY 2016 FY 2017 FY 2018 FY 2019

Banks 21,175 33,176 43,914 59,999

SFBs - 32,384 23,160 29,990

NBFC-MFIs 34,067 31,992 45,794 68,156

NBFCs 20,525 6,974 12,740 18,539

Not for Profit MFIs 2,355 1,467 1,616 1,863

Total Industry 78,123 105,994 127,223 178,547

Y-O-Y growth rate % - 36 20 40

Table-02

Portfolio outstanding as on March 31, 2019 is `178,547 crore and it grew by 40% from
`127,223 crore as of March 31, 2018

NBFC-MFIs witnessed the highest portfolio outstanding growth at 49% across all
categories of lenders as at end of FY 2019 compared to previous year
Disbursement Trends

MicrofinancePulse
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Disbursement Trends – Institution wise (by volume)
Graph-03 No. of Loans Disbursed (in Lakh)

800
674
700
562 1%
600 516 8%
485 1%
500 4% 9%
7% 1%
400 7% 48%

300 42%
45%
49%

Banks
200 20% 16%
15%
23% SFBs
100 24% 27% 25%
28%
NBFC-MFIs
- NBFCs
FY 16 FY 17 FY 18 FY 19 Not for Profit MFIs
Total Industry

No.of Loans Disbursed (in Lakh)

Lenders FY 2016 FY 2017 FY 2018 FY 2019

Banks 125 129 141 187

SFBs 120 99 88 103

NBFC-MFIs 213 219 277 322

NBFCs 37 31 49 55

Not for Profit MFIs 21 7 7 7

Total 516 485 562 674

Table-03

Loan disbursal in terms of volume grew by 20% in FY 19 compared to FY 18

NBFC-MFIs have sourced highest loans across all categories of lenders

Banks witnessed highest growth at 32% from FY 18 to FY 19

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Disbursement Trends – Institution wise (by value)
Graph-04 Disbursed Amount (in `crore)

213,074
250000
8%
157,211
200000
119,522
9% 39%
150000 7%
105,191
35% 40%
15%
Banks
100000 7%
31% SFBs
20% 16%
26%
NBFC-MFIs
50000 33% 37%
34% 37% NBFCs
Not for Profit MFIs
FY 16 FY 17 FY 18 FY 19 Total Industry

Disbursed Amount (in `crore)

Particulars FY 2016 FY 2017 FY 2018 FY 2019

Banks 34,859 44,225 54,107 78,596

SFBs 27,054 24,368 24,146 31,673

NBFC-MFIs 33,259 41,819 63,009 83,200

NBFCs 7,290 7,602 14,016 17,448

Not for Profit MFIs 2,729 1,508 1,933 2,157

Total Industry 105,191 119,522 157,211 213,074

Table-04

Loan disbursal in terms of value grew by 36% in FY 19 compared to FY 18

Banks witnessed highest growth at 45% from FY 18 to FY 19

NBFC-MFIs witnessed growth at 32% from FY 18 to FY 19

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Industry Ticket Size Trends
Graph-05 All India ATS ( in ` ) and No.of Loans disbursed by Ticket Size (in Lakh)

31,623
27,964
24,644 674
20,372
562
516 8%
485
13% 17% 0-10K
7%
9% 10K-20K
30%
42% 20K-30K
46% 47%
30K-40K
43%
40K-50K
27% 22%
14% 50K-60K
16% 14% 9% 7%
>60 K
FY 16 FY 17 FY 18 FY 19 Total Industry
All India ATS (in `)

No.of Loans Disbursed (in Lakh)

Ticket Size (in `) FY 2016 FY 2017 FY 2018 FY 2019

0-10,000 84 66 52 49

10,000-20,000 220 133 120 97

20,000-30,000 155 203 257 314

30,000-40,000 38 42 74 113

40,000-50,000 12 18 30 51

50,000-60,000 4 8 9 15

60,000 Plus 4 14 21 36

Total 516 485 562 674

Y-O-Y loan disbursal growth rate % - -6 16 20

All India ATS (in `) 20,372 24,644 27,964 31,623

Y-O-Y ATS growth rate % - 21 13 13

Table-05

`50,000-`60,000 ticket size category has witnessed the highest increase by 67% from 9
lakh loans in FY 18 to 15 lakhs loans in FY 19.

Highest number of loans in FY 19 are disbursed in `20,000-`30,000 ticket size category

followed by `30,000-`40,000 ticket size category

Overall ATS grew by 13% from FY 18 to FY 19

Industry Risk Profile

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Industry Risk Profile
Graph-06 Delinquency by Days Past Due

16.0% 15.03%

14.0%

12.0% 4.74%

10.0%
2.60%
8.0%

6.0% 2.41%
2.88%
4.0% 1.08% 1-29 days past due
2.39%
5.28% 30-59 days past due
2.0% 1.49%
0.89% 1.40% 60-89 days past due
0.0% 0.09% 0.81% 90-179 days past due
Mar' 16 Mar' 17 Mar' 18 Mar' 19

Delinquency by Days Past Due

1-29 Days 30-59 Days 60-89 Days 90-179 Days 1-179 Days
Reporting Month
Past Due Past Due Past Due Past Due Past Due

March 2016 0.89% 0.06% 0.04% 0.09% 1.08%

March 2017 4.74% 2.60% 2.41% 5.28% 15.03%

March 2018 1.49% 0.26% 0.32% 0.81% 2.88%

March 2019 1.40% 0.31% 0.24% 0.45% 2.39%

Table-06

Delinquencies were highest in March 2017

Delinquencies witnessed improvement from March 2018 to March 2019

90+ Delinquency witnessed tremendous improvement in March 2019 from March 2017

Note : Delinquencies calculated basis POS

State Wise Portfolio
Outstanding and
Delinquency

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Portfolio Outstanding Trends - Top 10 States
Graph-07 Portfolio Outstanding Market Share

100%
90%
80%
70%
60%
50% 84% 82% 85% 83%
40%
30%
20%
10%
16% 18% 15% 17%
0%
Top 10 States
Mar' 16 Mar' 17 Mar' 18 Mar' 19
Rest of India

Portfolio Outstanding (`crore)

Top 10 States March 2016 March 2017 March 2018 March 2019

West Bengal 10,148 15,166 19,589 26,987

Tamil Nadu 11,042 15,055 18,828 24,611

Bihar 5,312 8,465 11,685 18,036

Karnataka 8,078 9,903 11,030 15,294

Maharashtra 8,091 9,674 8,903 12,420

Assam 3,726 5,471 7,966 12,021

Odisha 3,789 5,166 8,166 11,412

Uttar Pradesh 7,175 8,072 8,425 10,812

Madhya Pradesh 5,325 6,043 7,303 9,905

Kerala 2,967 3,839 5,772 6,942

Total Top 10 States 65,654 86,854 107,668 148,440

All India 78,123 105,994 127,223 178,547

Market Share of Top 10 States 84% 82% 85% 83%

Table-07

Market share of top 10 states in portfolio outstanding is 83% in March 2019

West Bengal contributes 15% of the total portfolio outstanding as on March 2019

Bihar witnessed highest growth at 54% from March 2018 to March 2019
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Density Heat Map
Map-01

Jammu & Kashmir

Himachal Pradesh
Punjab
Chandigarh
Uttarakhand
Haryana
NCT of Delhi
Arunachal Pradesh
Sikkim
Uttar Pradesh 4
Rajasthan
5Assam
Assam
10 Nagaland
Bihar Meghalaya
Manipur
Jharkhand 8 Tripura
Gujarat Madhya Pradesh West Bengal 2
Mizoram

Chhattisgarh
Odisha
Daman & Diu
Dadara & Nagar Haveli 6
Maharashtra
Telangana

Goa Andhra Pradesh

Karnataka

7 1
Lakshadweep Puducherry
Tamil Nadu
Kerala 3 Andaman & Nicobar Island
9

<=0.5%
0.6% to 3.5%
3.6% to 6.0%
>6.0%

Active Borrowers Population Census-2011 Concentration

Top 10 States
(in ‘000) (in ‘000) (in%) Microfinance industry has
Puducherry 133 965 14 presence in 619 districts in
Tripura 389 3,671 11 India
Tamil Nadu 6,853 72,139 9
Top 30 districts comprise of
Sikkim 24 281 9
25% of portfolio outstanding
Assam 2,401 31,169 8

Odisha 3,209 41,947 8 213 districts of India

Karnataka 4,311 61,131 7 contribute 80% of the
West Bengal 5,370 91,348 6 portfolio outstanding
Kerala 1,848 33,388 6

Bihar 5,309
111 districts each have
103,805 5

Others 18,375
portfolio outstanding of less
756,279 2

48,222
than `10 crore each
Total 1,196,123 4
Table-08

Note : Data as on March 31, 2019. No.1 indicates highest concentration. This map is a generalized illustration only and is not intended to be used for reference purposes.
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State wise Portfolio Outstanding
Map-02

Jammu & Kashmir

Himachal Pradesh
Punjab
Chandigarh
Uttarakhand
Haryana
NCT of Delhi
Arunachal Pradesh
Sikkim
Uttar Pradesh
Rajasthan 6 Assam
8 3 Nagaland
Bihar Meghalaya
Manipur
Jharkhand Tripura
Gujarat Madhya Pradesh West Bengal
Mizoram
9 1
Chhattisgarh
Odisha
Daman & Diu
Dadara & Nagar Haveli 7
Maharashtra
5 Telangana

Goa
Andhra Pradesh
Karnataka
4

Lakshadweep Puducherry
Tamil Nadu
Kerala Andaman & Nicobar Island
10 2

< `1000 Cr `5000 Cr - `10,000 Cr

`1000 Cr - `3000 Cr `10,000 Cr - `15,000 Cr
`3000 Cr - `5000 Cr >= `15,000 Cr

West Bengal is leading the MFI sector with more than `26,000 crore of portfolio
outstanding as on March 2019

West Bengal, Tamil Nadu, Bihar and Karnataka have greater than `15,000 crore portfolio
outstanding

Maharashtra, Assam, Odisha and Uttar Pradesh have `10,000 crore to `15,000 crore
portfolio outstanding

Note : Top 10 states highlighted basis highest portfolio outstanding where no. 1 indicates the highest portfolio balance. Data as on March 31, 2019.
This map is a generalized illustration only and is not intended to be used for reference purposes.
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State wise 90+ Delinquency
Map-03

Jammu & Kashmir

Himachal Pradesh
Punjab
Chandigarh
8
Uttarakhand
Haryana
NCT of Delhi
10 Arunachal Pradesh
Sikkim
Uttar Pradesh
Rajasthan 3
Assam
Assam
1 Nagaland
4 Meghalaya
Bihar
Manipur
Jharkhand Tripura 2
Gujarat Madhya Pradesh 9 West Bengal
5 Mizoram
7
Chhattisgarh
Odisha
Daman & Diu
Dadara & Nagar Haveli
Maharashtra
Telangana

Goa Andhra Pradesh

6
Karnataka

Lakshadweep Puducherry
Tamil Nadu
Kerala Andaman & Nicobar Island

<=0.1%
0.2% to 0.3%
0.4% to 0.6%
>=0.7%

Pan India 90+ delinquency has come down to 0.45% in March 2019 from 0.81% in March
2018

Delinquency of Odisha has increased from 0.21% in March 2018 to 1.69% in March 2019

Note : Top 10 states highlighted basis lowest delinquency post excluding states where the POS is < `1000 crore. No.1 indicates the lowest 90+ delienquency
Data as on March 31, 2019.This map is a generalized illustration only and is not intended to be used for reference purpose.
Top 30 Districts –
Portfolio & Delinquency

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Top 30 Districts – Portfolio & Delinquency as on March 31, 2019
Top 30 Districts w.r.t Portfolio Top 30 Districts w.r.t 90+ Delinquency
POS PAR POS PAR
Top 30 Districts State Top 30 Districts State
(` crore) 90+ (%) (` crore) 90+ (%)
North 24 Parganas West Bengal 2,719 0.40% Nabarangapur Odisha 217 10.12%

Murshidabad West Bengal 2,271 0.07% Balangir Odisha 532 7.27%

Jalpaiguri West Bengal 2,230 0.12% Sonapur Odisha 193 5.78%

Nadia West Bengal 2,211 0.20% Bargarh Odisha 489 5.55%

South 24 Parganas West Bengal 2,167 0.46% Boudh Odisha 158 5.10%

Bardhaman West Bengal 2,061 0.25% Kalahandi Odisha 412 4.69%

Howrah West Bengal 1,850 0.15% Ashok Nagar Madhya Pradesh 49 4.58%

Hooghly West Bengal 1,756 0.15% Kandhamal Odisha 99 3.66%

Mysore Karnataka 1,681 0.09% Koraput Odisha 204 2.79%

Cooch Behar West Bengal 1,681 0.21% Tiruvarur Tamil Nadu 776 2.77%

Kamrup Assam 1,541 0.13% Nagapattinam Tamil Nadu 947 2.75%

Coimbatore Tamil Nadu 1,510 0.53% North East Delhi Delhi 17 2.57%

Kanchipuram Tamil Nadu 1,479 0.23% Nuapada Odisha 139 2.54%

Cuddalore Tamil Nadu 1,458 0.17% Sagar Madhya Pradesh 236 2.46%

Villupuram Tamil Nadu 1,418 0.19% Jharsuguda Odisha 220 2.42%

West Tripura Tripura 1,339 0.15% Kozhikode Kerala 360 2.16%

Thanjavur Tamil Nadu 1,309 1.48% Central Delhi Delhi 10 2.03%

Samastipur Bihar 1,282 0.01% Patan Gujarat 47 1.89%

Muzaffarpur Bihar 1,245 0.08% Raisen Madhya Pradesh 165 1.89%

Nagaon Assam 1,233 0.24% Idukki Kerala 244 1.88%

Pune Maharashtra 1,167 0.63% Amravati Maharashtra 198 1.88%

Malda West Bengal 1,146 0.16% Jamtara Jharkhand 34 1.83%

East Champaran Bihar 1,144 0.03% Pudukkottai Tamil Nadu 611 1.79%

Madurai Tamil Nadu 1,124 0.35% Deoghar Jharkhand 122 1.77%

Ganjam Odisha 1,105 0.06% Narsinghpur Madhya Pradesh 147 1.76%

Bangalore Karnataka 1,102 0.58% Sambalpur Odisha 312 1.74%

Begusarai Bihar 1,081 0.06% Kodagu Karnataka 191 1.74%

Belgaum Karnataka 1,064 0.27% Junagadh Gujarat 16 1.73%

Tiruvallur Tamil Nadu 1,057 0.38% Debagarh Odisha 72 1.72%

East Midnapore West Bengal 1,054 0.14% Pathanamthitta Kerala 306 1.71%

Table-09 Table-10

Portfolio as of March 2019 indicates that the state of West Bengal has maximum number of
districts in top 30 districts Pan India followed by Tamil Nadu

As of March 2019 the state of Odisha has the maximum districts 90+ delinquency as
compared to other states

Note: Districts having portfolio less than `10 crore not considered in table 10. Data as on March 31, 2019
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Microfinance Pulse – Second Edition
Microfinance has proved to be an important tool in serving the poor, particularly women. The
success of microfinance interventions in several countries across the world has brought
recognition to the sector. It is now considered as a significant tool for achieving Sustainable
Development Goals. The microfinance in India has made significant progress during the last
decade, thereby supporting equitable growth at the bottom of the pyramid.
Definition of Microfinance
Reserve Bank of India defines microfinance as "provision of thrift, credit and other financial
services and products of very small amounts to the poor in rural, semi-urban or urban areas
for enabling them to raise their income levels and improve their living standards".
Bank credit to MFIs (NBFC-MFIs, Societies, Trusts, etc.) extended for on-lending to
individuals and also to members of SHGs/JLGs is eligible for categorisation as priority sector
advance under respective categories viz., Agriculture, Micro, Small and Medium Enterprises,
Social Infrastructure and Others subject to the criteria laid down in para 19 of the Master
Direction FIDD.CO.Plan.1/04.09.01/2016-17 dated July 7, 2016 (updated as on December
04, 2018) on Priority Sector Lending – Targets and Classification.

Area Guidelines
Pricing of Loans Margin cap for large MFIs - 10%;

Margin cap for other MFIs - 12%;

Interest rate charged = Cost of funds + margin or average base rate of five largest commercials banks by
assets multiplied by 2.75 times, whichever is lower

Pricing in individual loans may exceed 26% provided the maximum variance for individual loans between
minimum and maximum interest charged does not exceed 4%.

Only three components to be included in pricing of loans:

i.Interest charge

ii.Processing fees charge, not exceeding 1% of gross loan amount

iii.Insurance premium

Multiple borrowings Not more than two NBFC-MFIs should lend to the same borrower.

Total indebtedness of the borrower does not exceed INR 1,00,000 (excluding loans availed for education
& medical expense); loan amount does not exceed INR 60,000 in the first cycle and INR 1,00,000 in
subsequent cycles

Loan characteristics Borrowers annual household income not to exceed INR 1 lakh in
rural areas and INR 1.60 lakh in urban areas.

Tenure of the loan not to be less than 24 months for loan amount in excess of INR 30,000 with
prepayment without penalty.

Agreegate amount of loans given for income generation should constitute at least 50% of the total loans
of MFIs.

No penality charged for delayed payments, no security deposit/margin to be taken

Detailed loan card to every borrower

Loan to be extended without collateral and is repayable in weekly, fornightly or monthly instalments at
borrower’s choice.
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Recoveries Recovery is normally made only at a central designated place. Field staff is allowed to make
recovery at the place of residence or work of the borrower only if, borrower fails to appear at
central designated place on 2 or more successive occasions.

Provisioning Higher of a) 1% of the outstanding loan portfolio or b) 50% of aggregate loan instalments
overdue for more than 90 days and less than 180 days and 100% of aggregate loan
instalments overdue for 180 days or more

Funding Access MFI loans continue to qualify as PSL

Credit Information Every NBFC-MFI must be member of CIC and onboard data to the CICs as mandated by
RBI.

Post AP crisis RBI intervened by constituting a committee under the Chairmanship of Shri Y.H. Malegam to study issues and concerns in
the MFI sector. Based on the recommendations of the committee, RBI had formed a separate category of NBFC viz. Non-Banking Financial
Company-Micro Finance Institution (NBFC-MFI) and issued separate directions on December 02, 2011. NBFC-MFI is defined as a
non-deposit taking NBFC (other than a company licensed under Section 25 of the Indian Companies Act, 1956) that fulfils the following
conditions:

(i) Minimum NOF of INR 5 crore. (For NBFC-MFIs registered in the North Eastern Region of the country, the minimum NOF requirement
shall stand at INR 2 crore).

(ii) Not less than 85% of its net assets are in the nature of “qualifying assets.”
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About SIDBI
Small Industries Development Bank of India (SIDBI), established under an Act of the Indian Parliament in
1990, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro,
Small, and Medium Enterprises (MSME) sector. Over the years, through its various financial and
development measures, the Bank has touched the lives of people across various strata of the society and
impacted enterprises over the entire MSME spectrum.

In the context of the changing MSME lending landscape, the role of SIDBI has been realigned through
adoption of SIDBI Vision 2.0. The Vision 2.0 envisages an integrated credit and development support role
of the Bank by being a Thought Leader, adopting a credit-plus approach, creating a multiplier effect and
serving as an aggregator, in the MSME space.

In line with Vision 2.0, during the year, the business strategies have been reoriented, along with putting in
place strategic business initiatives & product/operational improvements, various structural initiatives have
been embarked upon and the digital drive has been invigorated.

SIDBI in Microfinance space

SIDBI has been a pioneer in the micro-finance space by providing financial assistance, in the form of
equity/ quasi equity, term loans and grant support to Micro Finance Institutions (MFIs) while advocating
and implementing various responsible lending practices. As an industry leader, SIDBI has been working
continuously towards enhancing the capacity of microfinance institutions and promoting responsible
microfinance and enabling smooth flow of adequate credit to the micro finance sector through various
interventions. Till March 2019, the Bank has developed the capacity of more than 100 MFIs and provided
financial support to them to the extent of INR 18,446 crore , benefitting 385 lakhs people, mostly women.

About Equifax
Equifax is a global information solutions company that uses trusted unique data, innovative analytics,
technology and industry expertise to power organizations and individuals around the world by transforming
knowledge into insights that help make more informed business and personal decisions.

Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America,
Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor’s (S&P)
500® index and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol
EFX. Equifax employs 11,000 employees worldwide.

With a global legacy of over 120 years in the credit industry, in 2010, Equifax established a presence in
India market and was licensed by RBI to operate as a CIC. Over the last 9 years, the credit bureau has
grown to 4000+ members including Banks, NBFCs, MFIs and insurers. These members provide data on
demographic and repayment information on millions of Indian consumers. In 2014, Equifax further grew its
footprint in India through acquisition of an analytics firm. Equifax Analytics Pvt. Ltd is Equifax’s fully owned
analytics entity in India, which delivers unparalleled customized analytics solutions that enrich both the
performance of businesses and the lives of consumers.
Disclaimer
The Microfinance Pulse Report (Report) is prepared by Equifax Credit Information Services Pvt Ltd (Equifax). By accessing and using the report the user
acknowledges and accepts such use is subject to this disclaimer. This Report is based on collation of information substantially provided by microfinance
institutions as of March 2019 and who are members with Equifax. While Equifax takes reasonable care in preparing the Report, Equifax shall not be
responsible for accuracy, errors and/or omissions caused by in accurate or inadequate information submitted to it by microfinance institutions. Further,
Equifax does not guarantee the adequacy or completeness of the information in the Report and/or its suitability for any specific purpose nor is Equifax
responsible for any access or reliance on the Report and that Equifax expressly disclaims all such liability. This Report is not a recommendation for
rejection/denial or acceptance of any application, product nor any recommendation by Equifax to (i) lend or not to lend; (ii) enter into or not to enter into
any financial transaction with the concerned individual/entity. The information contained in the Report does not constitute advice and the user should
carry out all necessary analysis that is prudent in its opinion before making any decision based on the Information contained in this Report. The use of
the Report is governed by the provisions of the Credit Information Companies (Regulation) Act 2005, the Credit Information Companies Regulations,
2006, Credit Information Companies Rules, 2006. No part of the report should be copied, circulated, published without prior approvals.
 CONTACT DETAILS

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